Background - Limited Release Product Drops

Limited release product drops are a key marketing strategy for any product that can generate brand equity from ‘hype’ – a type of grassroots marketing value. However, these drops are vulnerable to manipulation, particularly by automated Bots who buy up a large portion of the limited product. This inflates the product’s price on the secondary market, with Bots capturing most of this value.

The potential for brand harm by Bots pricing out some consumers is often outweighed by the additional value to the brand, as resale markets act to accelerate hype.

A better solution to the current paradigm would shift the capture of resale value from purely rent seeking middlemen (the Bots) to those who value the brand or service most – the brand’s biggest supporters.